The Three Sections of the Comprehensive Annual Financial Reports of State

question 21

True/False

The three sections of the comprehensive annual financial reports of state and local governments are (1) an introductory section, (2) a financial section, and (3) a supplemental section.

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Definitions:

Bond Issue

The process by which a borrower issues bonds to investors in order to raise capital.

Cash Flow

The total amount of money being transferred into and out of a business, especially as affecting liquidity.

Callable Bonds

Bonds that can be redeemed by the issuer prior to their maturity date, usually at a premium above the face value.

Financing Activities

Transactions involving changes in equity and long-term liabilities on the balance sheet, reflective of how a company raises capital and repays its investors.